--- title: "Evertec | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 247.92 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285622130.md" datetime: "2026-05-07T21:16:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285622130.md) - [en](https://longbridge.com/en/news/285622130.md) - [zh-HK](https://longbridge.com/zh-HK/news/285622130.md) --- # Evertec | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 247.92 M Revenue: As of FY2026 Q1, the actual value is USD 247.92 M, missing the estimate of USD 249.55 M. EPS: As of FY2026 Q1, the actual value is USD 0.38, missing the estimate of USD 0.5754. EBIT: As of FY2026 Q1, the actual value is USD 58.07 M. #### Overall Financial Performance (Three months ended March 31, 2026 vs. 2025) - **Total Revenues**: EVERTEC, Inc. reported total revenues of $247,923 thousand for the three months ended March 31, 2026, an 8% increase from $228,792 thousand in the prior year period, driven by organic growth and a Q4 2025 acquisition . - **Operating Costs and Expenses**: - Cost of revenues, exclusive of depreciation and amortization: $118,245 thousand in 2026, up 3% from $114,609 thousand in 2025, primarily due to higher personnel and cloud expenses . - Selling, general and administrative expenses: $47,846 thousand in 2026, a 32% increase from $36,210 thousand in 2025, mainly due to higher professional fees and contingent consideration payments . - Depreciation and amortization: $37,263 thousand in 2026, a 31% increase from $28,473 thousand in 2025, primarily due to amortization of intangible assets from a Q4 2025 acquisition . - Total operating costs and expenses: $203,354 thousand in 2026, up 13% from $179,292 thousand in 2025 . - **Income from Operations**: $44,569 thousand in 2026, a -10% decrease from $49,500 thousand in 2025 . #### Non-Operating Income (Expenses) (Three months ended March 31, 2026 vs. 2025) - **Interest income**: $3,860 thousand in 2026, up 19% from $3,251 thousand in 2025 . - **Interest expense**: - $17,357 thousand in 2026, a 2% increase from - $16,988 thousand in 2025, due to increased outstanding debt . - **Loss on foreign currency remeasurement**: - $3,726 thousand in 2026, a 347% increase from - $833 thousand in 2025, primarily due to foreign currency fluctuations . - **Earnings from equity investees**: $1,446 thousand in 2026, a -30% decrease from $2,077 thousand in 2025 . - **Other income, net**: $187 thousand in 2026, a -15% decrease from $220 thousand in 2025 . - **Total non-operating expenses**: - $15,590 thousand in 2026, a 27% increase from - $12,273 thousand in 2025 . - **Income tax expense**: $4,232 thousand in 2026, up 2% from $4,136 thousand in 2025, with the effective tax rate increasing to 14.6% from 11.1% due to a larger proportion of income from higher tax rate foreign jurisdictions . #### Segment Performance (Three months ended March 31, 2026 vs. 2025) - **Payment Services - Puerto Rico & Caribbean**: - Revenues: $58,445 thousand in 2026, up from $55,157 thousand in 2025 . - Segment Adjusted EBITDA: $34,740 thousand in 2026, up from $31,438 thousand in 2025 . - Segment Adjusted EBITDA Margin: 59.4% in 2026, up from 57.0% in 2025 . - Drivers: Revenue growth was driven by transaction growth, strength in ATH Movil (especially ATH Business), and higher revenue from services provided to the Latin America Payments and Solutions segment . - **Latin America Payments and Solutions**: - Revenues: $110,330 thousand in 2026, significantly up from $83,775 thousand in 2025 . - Segment Adjusted EBITDA: $32,800 thousand in 2026, up from $24,895 thousand in 2025 . - Segment Adjusted EBITDA Margin: 29.7% in both 2026 and 2025 . - Drivers: Revenue growth was driven by the Tecnobank acquisition in Q4 2025, strong performance in Brazil, continued organic growth across the region, and favorable foreign currency exchange rate fluctuations . - **Merchant Acquiring**: - Revenues: $48,405 thousand in 2026, up from $47,649 thousand in 2025 . - Segment Adjusted EBITDA: $19,518 thousand in 2026, down from $20,359 thousand in 2025 . - Segment Adjusted EBITDA Margin: 40.3% in 2026, down from 42.7% in 2025 . - Drivers: Revenue increase was due to positive sales volume growth and higher non-transactional revenues, partially offset by a slight decrease in spread, while EBITDA decreased due to higher processing costs . - **Business Solutions**: - Revenues: $59,538 thousand in 2026, down from $65,564 thousand in 2025 . - Segment Adjusted EBITDA: $21,637 thousand in 2026, down from $22,211 thousand in 2025 . - Segment Adjusted EBITDA Margin: 36.3% in 2026, up from 33.9% in 2025 . - Drivers: Revenue decrease was mainly due to a 10% discount to Popular effective in Q4 2025 and the impact of non-recurring hardware and software sales in the prior year, with EBITDA decrease primarily due to the Popular discount . #### Cash Flow (Three months ended March 31, 2026 vs. 2025) - **Net cash provided by operating activities**: $31,210 thousand in 2026, compared to $37,643 thousand in 2025, driven by working capital requirements . - **Net cash used in investing activities**: - $23,177 thousand in 2026, compared to - $22,324 thousand in 2025, primarily due to increased additions to software and purchase of available-for-sale debt securities . - **Net cash used in financing activities**: - $33,717 thousand in 2026, compared to - $27,545 thousand in 2025, mainly driven by $20,000 thousand in share repurchases and increased settlement activities . - **Net decrease in cash, cash equivalents and restricted cash**: - $19,676 thousand in 2026, compared to - $7,031 thousand in 2025 . #### Capital Resources and Dividends - **Capital Expenditures**: EVERTEC, Inc. invested approximately $22,700 thousand in capital resources during the three months ended March 31, 2026, compared to $22,300 thousand in the corresponding period of 2025, primarily for hardware, software, and property and equipment . - **Dividends**: A quarterly cash dividend of $0.05 per share was declared on February 19, 2026, and paid on March 6, 2026, with another $0.05 per share dividend declared on April 30, 2026, expected to be paid on June 5, 2026 . #### Future Outlook and Strategy EVERTEC, Inc. anticipates continued expansion in Latin America and the Caribbean, driven by the ongoing shift from cash to electronic payments and increasing adoption of banking products . The company plans to leverage its diversified business model to penetrate existing customer bases with new services, acquire new customers, and enter new markets . Investments in digital solutions like Placetopay, ATH Movil, and Paystudio, along with software development for systems like Brazil’s Pix, are expected to generate substantial growth opportunities . ### Related Stocks - [EVTC.US](https://longbridge.com/en/quote/EVTC.US.md) ## Related News & Research - [Evertec Signs Strategic Agreement with Transbank | EVTC Stock News](https://longbridge.com/en/news/286821787.md) - [Evertec agrees to buy 67% stake in Brazil’s BBChain for BRL 28 million](https://longbridge.com/en/news/287230150.md) - [Evertec Enters Agreement With Transbank to Advance Payments Ecosystem in Chile](https://longbridge.com/en/news/286823347.md) - [Evertec Adds $185 Million Incremental Term Loan B, Repays Revolver Under Amended Credit Deal](https://longbridge.com/en/news/287123762.md) - [Evertec (NYSE:EVTC) Stock Price Up 6.2% After Insider Buying Activity](https://longbridge.com/en/news/286118582.md)